No amount of govt money will ever cause inflation again. The tools for govt intervention (the Fed rate, quantitative easing through the purchase of Tbills,etc) may have been effective in the time when the world was simpler (Remember 'It's a Wonderful Life' with James Stewart?). But loans from banks do not drive the economy any more. In fact many businesses look to VCs, and angels. Loans are for chumps. So what DO these tools do? Where does the money go? It goes to places that will generate the highest ROI - other financial opportunities and investments removed from the real world. In fact, I would interpret that skyrocketing stock market as evidence of too much money chasing too few equities. There may be 'inflation' of equities prices, bond prices, REIT prices, etc. But unless the money gets into the hands of the people who need a house or need a job or need food, it won't help the economy. Adam Smith's laws and the 'invisible hand' of the market assumes a continuous distribution of currency transacted by rational agents with equal access. Instead the world is quantized and now a large fraction of the population are below the threshold where these interventions are meaningful.